What Florida HOAs Need to Know About the Marketable Record Title Act

What Florida HOAs Need to Know About the Marketable Record Title Act

Enacted 52 years ago, the Florida Marketable Record Title Act (“MRTA”) is a statute many homeowners associations remain blissfully unaware of — usually to their detriment.

The purpose of this law was to extinguish claims that were more than 30 years old from property titles, effectively clearing up old defects from titles. Unfortunately, there was an unintended consequence to this law: it set the Declarations of Covenants, Conditions and Restrictions recorded for HOAs to also expire after 30 years.

Thankfully, the MRTA includes a specific process for HOAs to preserve and renew their covenants and restrictions after the 30-year time period expires.

Under the MRTA, HOAs must file a “Notice to Preserve” in the public records of the county where the HOA is located prior to the expiration of the 30-year period. This notice must be approved by at least two-thirds of the HOA’s Board of Directors. In addition, a notice of the meeting about ratifying the Notice to Preserve must be provided using the statutorily required meeting notice procedures at least seven days prior to the meeting date.

If the 30-year period has already expired, the MRTA has made provisions for reinstating an HOA’s covenants and restrictions. A proposal for reviving an HOA’S Declarations of Covenants, Conditions and Restrictions must:

• Be initiated by a committee comprised of at least three HOA members; and
• Be submitted to the Department of Community Affairs for review no later than 60 days after the proposed revived Declarations of Covenants, Conditions and Restrictions have been approved by the organizing committee and HOA membership.

HOA leaders should check the recording date for their Declarations of Covenants, Conditions and Restrictions and work with an experienced Florida real estate attorney to avoid the expiration of these important governing documents. Failure to do so could result in challenges by homeowners that the HOA’s rules and regulations no longer apply, adversely affecting the HOA’s financial and administration capabilities.

The attorneys at Jurado & Farshchian, P.L. combine their knowledge and experience in Florida real estate law with a commitment to personalized, detail-oriented legal services. Contact one of our experienced Florida real estate attorneys at (305) 921-0440, or email us at info@jflawfirm.com.

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